All proceeds beyond the amount needed to repay the loan, interest, and lenders' legitimate costs associated with collecting, will go to Jackson. Seller may sell the assets at a little less than market, due to having the right to make itself whole reasonably quickly, but there won't be much discount. Plenty of bidders will surface for both these assets, and by selling at unreasonably low prices, the lender would be opening itself up to huge, and likely successful, lawsuits for the difference between sale price and reasonable market price. Jackson will be very rich for a while, but in his condition, it won't take him long to run through the $800 million or so.
First, the value of the asset, say $1 billion, will be sharply discounted, by at least 15%, because another party owns the other 50%. IOW, there is no clear controll...it is "encumbered" and therefore worth less..
Next..it is believed that MJ has fradulently pledged the asset, and/or the stream of income from the asset, to cover other loans..
But the big problem for MJ is the tax consequences..when he aquired the asset it was for about $200 mill..so on his now 50% residual piece, he's looking at a capital gain of between $300 -$400 mill..A forclosure sale is still a sale, and the tax bill ..say $150 mill between the US and California..will be due, and the IRS and Cal will file liens on the transfer..MJ won't get a thin dime...